If the IRS previously reduced or disallowed certain tax credits, you may need to file Form 8862, Information to Claim Certain Credits After Disallowance, before you can claim those credits again.
Form 8862 is used to reestablish your eligibility for certain refundable and nonrefundable credits after a prior IRS adjustment. It applies to the:
- Earned Income Credit (EIC)
- Child Tax Credit (CTC)
- Additional Child Tax Credit (ACTC)
- Credit for Other Dependents (ODC)
- American Opportunity Credit (AOC)
What Is Form 8862?
Complete Form 8862 if you want to claim one of the credits listed above, meet all eligibility requirements, and either of the following applies:
- Your Earned Income Credit was reduced or disallowed for a tax year after 1996 for any reason other than a math or clerical error.
- Your Child Tax Credit, Additional Child Tax Credit, Credit for Other Dependents, or American Opportunity Credit was reduced or disallowed for a tax year after 2015 for any reason other than a math or clerical error.
In these situations, the IRS generally requires Form 8862 before allowing you to claim the credit again.
When Don't You Need Form 8862?
You don't need to complete Form 8862 if:
- You previously filed Form 8862 after the credit was disallowed or reduced, and
- The IRS subsequently allowed the credit, and
- The credit has not been reduced or disallowed again since then.
How to Complete Form 8862 in the Program
To access Form 8862 in the program:
- Go to the Federal section.
- Select Deductions - Select My Forms.
- Choose Credits.
- Claiming Refundable Credits After Disallowance (Form 8862)
Why Did the IRS Disallow My Credit?
Credits may be reduced or disallowed for several reasons, including:
- A qualifying child didn't meet IRS requirements.
- Income information was incorrect.
- Required documentation wasn't provided.
- The IRS determined you didn't qualify for the credit.
If you're unsure why your credit was disallowed, review any notices you received from the IRS. Understanding the reason can help ensure the credit is claimed correctly on your current return.
Before You File
Make sure you meet all eligibility requirements for the credit you're claiming. Filing Form 8862 doesn't automatically qualify you for a credit. It simply allows the IRS to reconsider your eligibility after a prior disallowance.